The plaintiffs entered into a contract with the defendant and placed an order for the supply of 15,000 bales of stockfish from Iceland and the supply was to be delivered to the Nigerian National supply Co. Ltd. This contract was entered into in 1981.

It was the case of the plaintiffs that the defendant shipped and delivered only 11052 bales to the Nigerian National Supply co. Ltd. that the balance of 3,948 bales were not delivered to the Nigerian National Supply Co. Ltd. or to any one else in Port Harcourt and that the documents alleged to have been used in shipping and delivering them were irregular and forged.

The defendant maintained that he shipped the total of 3,948 bales in two separate shipments of 2542 and 1406 bales and delivered them as requested. The plaintiffs further maintained that the defendant was not entitled to the money paid to him on those documents through his bank in Iceland.

After hearing evidence Adeyinka J. gave judgment in favour of the plaintiffs in the following terms:-

"Judgment is hereby entered for the Plaintiffs against the defendant for the special damages of $894.390 or its Naira equivalent with interest at 15% per annum from 1st day of January, 1981 to 31st day of July, 1987 and at 20% per annum from 1st August, 1987 until today and N1,000,000.00 (One Million Naira) being general damages."

Being dissatisfied, the defendant appealed to the court of Appeal, Lagos Division. The appeal was allowed and the plaintiffs claim was dismissed.

The appellants were dissatisfied with the judgement of the Court of Appeal and they appealed to the Supreme Court.